Seodaemun-gu Provides Financial Support to Residents to Overcome COVID-19

Published 15 May.2020 10:08(KST)

Existing Borrowers Granted 3-9 Month Principal Repayment Deferral and Temporary Interest Waiver for 2020... Seodaemun-gu Fully Supports Interest for New Borrowers This Year

Seodaemun-gu Provides Financial Support to Residents to Overcome COVID-19

[Asia Economy Reporter Jong-il Park] Seodaemun-gu (Mayor Moon Seok-jin) has prepared various support plans related to loans from the ‘Resident Income Support and Living Stability Fund’ to assist residents facing economic difficulties due to COVID-19.

First, the district will defer (extend the maturity) the principal repayment scheduled for this year for existing loan recipients from 3 months up to a maximum of 9 months.

Additionally, the interest at an annual rate of 1.5% will be temporarily waived from May to December this year.

This support will be implemented collectively by the district without requiring separate applications to ensure prompt execution and convenience for residents, and the relevant residents will be notified accordingly.

Furthermore, the district will advance the implementation of the second half of 2020’s ‘Resident Income Support and Living Stability Fund’ loans from the originally planned October to June, and expand the loan scale from the existing 500 million KRW to a maximum of 850 million KRW.

Residents who have continuously lived in Seodaemun-gu for more than one year as of the application date can apply for business funds (up to 30 million KRW), start-up funds, tuition fees, and disaster recovery funds (up to 10 million KRW). The funds cannot be used for debt relief or living expenses such as preparing deposits for monthly rent.

The loan conditions are an annual interest rate of 1.5%, with a 2-year grace period followed by 2 years of equal installment repayments. The district will also temporarily cover all interest incurred in 2020.

Applicants wishing to apply must visit the 5th floor of Seodaemun-gu Office, Autonomous Administration Division, from May 25 to June 12.

Loan funds will be provided only after passing the screening criteria following the application.

Mayor Moon Seok-jin of Seodaemun-gu said, “We will do our best to support residents so that they do not lose hope and can overcome these difficult times together despite the COVID-19 situation.”